I often get asked by my selling clients to help them fill out their property disclosures. In Arizona, while real estate agents can guide sellers on what needs to be disclosed about their property, they can't fill out the disclosure forms for them—that's the seller's job. While I am not an attorney and cannot dispense “legal advice”, I do hope to clarity a bit more about the responsibilities required regarding the Residential Sellers Property Disclosure Statement. (SPDS)
My Role as your REALTOR: I can help sellers understand the disclosure requirements, like pointing out any significant property issues that should be shared. There’s a cover page on the 10 page form that says, “When in Doubt – Disclose”.
YOUR Responsibility: Sellers are responsible for honestly and thoroughly completing the disclosure forms, revealing any known problems with the property. However, don’t panic – if you don’t know the answer – well you don’t know the answer! Not every home sold is a personal residence, and all one can do is disclose to the best of their ability.
Why Agents Can't Complete the Form:
- Fiduciary Duty: I must prioritize your best interests. If I were to complete the form, it could blur the lines of responsibility and potentially lead to conflicts.
- Legal Liability: If something important is left out or misrepresented, the seller could face legal issues. Agents are schooled in only working within the “sphere of their expertise”. Your business is not our business.
- Seller's Knowledge: The seller knows the property's history and condition best. Agents can't accurately disclose information they don't personally know.
Consequences of Not Disclosing:
- Legal Trouble: Buyers might take legal action after a sale if Sellers are found to have intentionally undisclosed problems.
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Sale Risks: In other situations, buyers could back out of the deal if they discover undisclosed issue
The Best thing to Do:
- Be upfront and detailed when filling out disclosure forms.
- If unsure about what to disclose, consider consulting a real estate attorney.
- Understand that hiding issues could lead to serious consequences down the road.
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